Will Design Thinking Deliver to the Consumer?

A new mantra among the corporations of the world is emerging for the teen years of the 21st century - Design Thinking.  Just like the concept of Innovation rose in the early 2000s, Design Thinking as an idea is finally on the rise.

The leaders in this space have existed for a while, couple of examples being IDEO and Procter & Gamble (with its Innovation Centers).  The level of understanding, misunderstanding or not understanding this space are clear from the Business Week article "Inside the Design Thinking Process", here.  The author, Helen Walters, discusses the Aspen Design Summit where multiple design driven sessions were conducted to solve hard problems.

I give credit to Ms. Walters on stating about the Design Thinking process as implemented at the Aspen Design Summit, "... the strongest takeaway was that those looking for a prescribed way to implement design thinking are destined to be disappointed. It's a messy, opaque process that depends as much on group dynamics as intellect or insight."

Preparation of such sessions requires experience and insights into human behavior.  Someone I personally know to be exceptionally talented at this is the Marketing Consulting Services of Copenhagen, see information here.

Yet, the one reason I suggest giving this article serious consideration is because the author highlights the key to the success of all Design Thinking processes, having the end user or consumer of the product or service engaged, which apparently was missing from all the sessions conducted at the Aspen Design Summit.  The author termed the results being developed out of the sessions to "seem like entirely inappropriate bunk" for the end user or consumer.

Perhaps all this is becoming news due to Roger Martin causing an uproar with his open challenge to the research driven, heavily analytical product and service development organizations and management consultancies, see my blog "Roger Martin - On Designing the Future", here.

I believe that exciting times are ahead as the left and right brained individuals realize that to truly deliver a breakthrough to their consumer, they must work collaboratively, break down the silo and unburden themselves from the past to really "create".

China Update

Good friend Mr. Tony Tsai, CEO – BHG Retail Innovation Institute and EVP Operations – The BJ Hualian Hypermarket Co. forwards valuable insights on China's approach and management of its ownership of USA debt and foreign exchange reserves, and how it is perceived globally.

Do we have a new leader that now begins to manage the economics of the globe?  Perhaps China has been one for a long while!

A horse may look like it is pulling the cart... but the one who holds the reins, reigns.

"How does China deal with the risk of holding US Treasury bonds?
"Convertible bonds" are not a solution for China in hedging the risk of holding US Treasury bonds. This could make things worse for China. Given the huge amount of foreign exchange reserves, what China should do is commit to adjusting its structure for economic growth, purchase strategic materials at the right time and persist in renminbi internationalization so as to ensure the security of China's investment in US Treasury bonds."

"World Bank believes China understands the risks of an asset-price bubble
Juan Jose Daboub, managing director of the World Bank, points out on Dec. 14 that the World Bank believes that Chinese authorities understand the risks of an asset-price bubble and will take the measures that they believe are more appropriate. They have done so in the past."

Growing Entrepreneurism - "Start-up Visa" to Dubai?

Interesting piece on offering visas to individuals who plan to start new businesses in a location that is not their native country.  The concept is discussed in the Abu Dhabi newspaper, The National, in an article "Making Dubai the global hub of start-up success", here.

The article provides comparisons to major start-up centers of the world such as San Francisco with an evaluation of infrastructure, tax consideration, etc.

The State of Business Process Management (BPM)

Good friend Rashid Khan, the inventor of the term BPM (Business Process Management) continues his educational blog on the industry, see here.  From one of his entries I found valuable:

"So what is the state of the BPM industry today? Here are some revealing facts:

• No pure-play BPM vendor is big enough or strong enough financially to go public, though several continue to threaten for several years now that they will soon. It does not happen, even while every year the analysts continue to forecast rapid growth in the industry and among the leaders.
• We keep hearing every other year that the big players such Oracle, Microsoft and SAP will make major inroads in to the BPM market, but that also has not happened.
• Gartner, after having pushed BPM, simulations, “round-tripping”, and SOA, is now on to a new gig called “Pattern Based Strategies” to further confuse their already confused customers, which is always good for their business. (see http://blogs.gartner.com/jim_sinur/2009/11/18/how-will-bpm-deal-with-pattern-based-strategies-pbs/ )
• All this while Gartner admits that the most important “hot questions” their clients ask are basic BPM 101 questions such as “1. What are the benefits of BPM?” and “2. How should I get started?” (see http://blogs.gartner.com/jim_sinur/2009/10/26/what-are-the-hot-questions-in-bpm/ ) Makes one wonder why companies are paying Gartner money for answering such basic questions, unless they are totally confused!
• There is no slowdown in the number of new entrants to the BPM market, which indicates that the market is still largely open with no strong leaders, and no sign of consolidation, contrary to all predictions. "
  

Breakthrough Innovation in 30 Hours?

Mr. Aaron Turcott, one of the top graduate students at Georgia Institute of Technology I had the opportunity to instruct sends a link to CapGemini's Accelerated Solutions Environment, here.  Interesting... 

I would direct anyone interested in the above to give serious consideration to my previous business partner Ms. Frederikke Kroon's breakthrough method of innovation conducted in 30 hours or less, see details and media on Frederikke's work and company Marketing Consulting Services in Copenhagen here.  Though the method requires intense preparation ranging anywhere from four to ten weeks, yet the execution occurs in 30 hours, creating tangible value that engages the client, carefully mixes in adjacencies, from anthropology to theology, scientists to artists, etc.  The results Frederikke's organization produced for multinational clients such as Arla, Vovlo and Carlsberg speak for themselves!

Roger Martin - On Designing the Future

My astute friend from McKinsey, Samvit Kanoria forwards "What's Thwarting American Innovation? Too Much Science, Says Roger Martin", in Fast Company, see here.  The article highlights Mr. Martin's focus on creativity in innovation being a combination of science and design aspects of product or service development working together.

For the scientist, he states - "The future has no legitimacy for analytical thinkers."

Mr. Martin thrashes the large management consulting companies and lays the blame of innovation bottle neck on a corporate structure mired in research and analysis of the past - "But what they analyze is the past.  And if the future is not exactly like the past, or there are things happening that are hard to measure scientifically, they get ignored."

Mr. Martin is asked - "Are you saying that the regression analysis jockeys and Six Sigma black belts have got it all wrong?" and he states - "Well, yes."

Interestingly, my tenure at P&G was during the time Roger Martin was advising A.G. Lafley and I was a part of the substantial changes brought within P&G's approach to business.  See information on some my work related to Virtual Shopper here on my friend Franz Dill's blog, who also was one of the founders of the P&G Innovation Centers.

Though Mr. Martin speaks candidly, yet the change he suggests carries pain to the corporate as a whole and the machinery of suppliers supporting it.  Corporate innovation remains more perception than reality, with incremental results seen in their markets from licensing, buyouts, etc.  Breakthrough innovation remains the domain of the entrepreneur, one who can imagine a future unburdened by the past!

Service Innovation in Airlines - AirAsia

Tony Fernandes believes that the key to his Air Asia airlines breakthrough success is people (committed to the customer), leadership and ability to brand and market - perhaps the pillars of service innovation.  See interview below.

Google's Holiday Gift to the US Air Travelers

Airline consumer will be heads down on their smartphones and laptops at airports this holiday season, thanks to Google, which is offering free WiFi at 47 participating airports around the USA, details here.  Though you will not find Atlanta, New York or Chicago on the list!

America's consumer goes from "Be Like" to "I Am"

"There is no such thing as "the American consumer"".

States an article in AdAge - "No more Joe consumer in America", here.  One key to this shift has been the American consumer's ability to voice a choice, ability to create and join communities of choice, and the choice being the brand that fulfills a need.  Did the Internet help enable this?

This democratization of the American demographic is discussed in a white paper (for you to purchase) here by Mr. Francese, demographic trends analyst at WPP's Ogilvy & Mather and founder of American Demographic magazine.  He states that:

"The iconic American family - married couple with children - will account for a mere 22% of households."

The changes represent the continued growth of digital communication mediums, while emphasizing the need to engage directly and pervasively with the consumer.

Brand Manager vs. Brand Advocate?

Forrester has finally caught up with the leading marketing companies of today!  Forrester published a report recommending the shift from the designation "Brand Manager" to "Brand Advocate" in their report - "Adaptive Brand Marketing: Rethinking Your Approach To Brands In The Digital Age", here.

I was activitly engaged in creating this new pathway seven years ago at PG-Tremor, details here.  The Advertising Age magazine states as much in their article, "Why its time to do away with the brand manager", here:

"Executives of big marketers Procter & Gamble and Unilever note that they're already doing much of what Forrester recommends.  The global brand strategist/local brand advocate breakdown, for instance, resembles how they and other big household and personal-care marketers already organize."

I remember one of the big moments was when the brand managers discovered they had minimal to no insights on the digital social networks driven communities of choice forming around the "choice" i.e. the brand that fulfilled a need.  The AdAge articles states this to be a necessity today:

"[Rex Briggs] believes marketers in the digital age need to be more "numerate", with more training in research and analytics..."

Interestingly, I remember listening to Paul Poleman current CEO of Unilever when he was at P&G about the importance of information technology in reaching the consumer.  He is quoted in the article stating:

"Web-enabled consumer intelligence may be one of the biggest benefits of social media for marketers."

The astute will note that Mr. Poleman used the words "intelligence" not analytics!

The Economist For Subscribers Now

Recently, the Economist has begun restricting content on their site.  Some of the great information freely available to the Internet user is now for the paid subscribers only.

The magazine recently wrote an article on America's ailing newspapers "Big is Best", read here.  It will be interesting to see how the Internet news and information market place shapes up.

Old and Famous Chinese Brands

Via Tony Tsai:

"China forbids foreign investment in "old and famous Chinese brands"
Vice Minister of Commerce Jiang Zengwei says that old and famous Chinese brands are not allowed to introduce foreign investment. If they do so, they will be deprived of the fame of being an "old and famous Chinese brand". He says there are only about 1,000 old and famous Chinese brands in China compared with more than 10,000 in 1949. He says the China should protect those old and famous brands. He points out it is an important duty of the government to protect China's national brands. According to the current regulations, an old and famous brand must have been established before 1956."